Lenders have revealed that 1.6 million mortgage holders have been given payment holidays, or one in seven households with a home loan, since the scheme began in early March.
The majority of these payment holidays – 700,000 – have been granted this month, revealing the significant impact of the Coronavirus crisis on many people’s family finances as the lockdown has continued.
And for the average mortgage holder, the payment holiday amounts to £755 per month of suspended payments, industry association UK Finance has revealed.
This follows its earlier announcement that lenders would not move to repossess properties for three months, when the crisis is expected to have eased.
And it has also announced that lenders are enabling home owners to transfer to better deals even if they have been furloughed or are struggling financially during the crisis.
This is so that, if they have come to the end of their term, they can reduce their financial burden once the crisis ends and their finances return to health.
“Lenders understand that many households are seeing their finances squeezed due to the coronavirus pandemic and we are working hard to help customers get through these tough times,” says Stephen Jones, CEO of UK Finance (left).
“The industry has acted quickly to support homeowners through this crisis and has taken decisive steps to ensure that eligible customers on payment holidays due to Covid-19 can opt for the security of fixing their monthly mortgage payments going forward.”
There are currently 10.9 million outstanding first charge mortgages in place or approximately 40% of the privately owned housing stock.